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2. Investment in human capital is very similar to investing in physical capital. True or false? Explain your
answer.

3. What is human capital and why is it crucial to expand human capital as part of the development process?

4. What are the critical health challenges facing developing countries today and what measure(s) are
being taken to confront these challenges? Explain your answer.

5. Explain the difference between size and functional measures of income distribution.

6. Explain why a Lorenz curve can never lie to the left or above the 45 degree line.

7. Distinguish between economic growth by modern sector enlargement, modern sector enrichment and
traditional sector enrichment. For each of the three cases, show what happens to absolute poverty
and to relative inequality, using a precise measure of each.

8. What are the characteristics of the poor ?

9. Read the case study 8 (p. 425), and answer the following question:
Although Progresa/Oportunidades has been successful in Mexico, why might a similar program not work
elsewhere?

10. Read the case study 12 (p. 663), and answer the following question:
What are the key ingredients of Taiwan’s successful entry into world markets? What lessons can other
developing countries draw from Taiwan’s experience with global markets?

11. Read the case study 5 (p. 264), and answer the following question:
Compare and contrast the similarities and the differences in the development experience of Ghana and
Cote d’Ivoire. How did the economic development policies followed by the two countries differ?